UPS 2010 Annual Report Download - page 86

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
U.S. Postretirement Medical Benefits
We also sponsor postretirement medical plans in the U.S. that provide health care benefits to our retirees
who meet certain eligibility requirements and who are not otherwise covered by multi-employer plans. Generally,
this includes employees with at least 10 years of service who have reached age 55 and employees who are
eligible for postretirement medical benefits from a Company-sponsored plan pursuant to collective bargaining
agreements. We have the right to modify or terminate certain of these plans. These benefits have been provided
to certain retirees on a noncontributory basis; however, in many cases, retirees are required to contribute all or a
portion of the total cost of the coverage.
International Pension Benefits
We also sponsor various defined benefit plans covering certain of our international employees. The majority
of our international obligations are for defined benefit plans in Canada and the United Kingdom. In addition,
many of our international employees are covered by government-sponsored retirement and pension plans. We are
not directly responsible for providing benefits to participants of government-sponsored plans.
Multi-Employer Benefit Plans
We also contribute to several multi-employer pension plans for which the subsequent disclosure information
is not determinable. Amounts charged to operations for pension contributions to these multi-employer plans were
$1.186, $1.125 and $1.069 billion during 2010, 2009, and 2008, respectively.
We also contribute to several multi-employer health and welfare plans that cover both active and retired
employees for which the subsequent disclosure information is not determinable. Amounts charged to operations
for contributions to multi-employer health and welfare plans were $1.066 billion, $1.031 billion and $990 million
during 2010, 2009, and 2008, respectively.
Defined Contribution Plans
We also sponsor several defined contribution plans for all employees not covered under collective
bargaining agreements, and for certain employees covered under collective bargaining agreements. The
Company matches, in shares of UPS common stock or cash, a portion of the participating employees’
contributions. In early 2009, we suspended the company matching contributions to the primary employee defined
contribution plan. A revised program of company matching contributions was reinstated effective January 1,
2011. Matching contributions charged to expense were $4, $21, and $116 million for 2010, 2009 and 2008,
respectively. The reinstatement of matching contributions is expected to increase annual expense by
approximately $75 million beginning in 2011.
Contributions are also made to defined contribution money purchase plans under certain collective
bargaining agreements. Amounts charged to expense were $78, $80 and $78 million for 2010, 2009, and 2008,
respectively.
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